momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.It brings together, managers from the agricultural world and important people from external perspectives, such as health, development, strategy and defense. Its objective is to promote regulationof agricultural markets by creating new evaluation tools, such as economic models and indicators,and by drawing up proposals for an agricultural and international food policy.

Agricultural subsidies: A telling measure of the changes in world agriculture

March 17, 2014

The Worldwatch Institute––an environmental research organization supported by a grant from the Bill & Melinda Gates Foundation––recently published a study on the increase and the impact of agricultural subsidies worldwide. The report indicates that, while they tend to decline, subsidies remain essential, and reached $486 billion in 2012 for the world’s 21 largest agricultural producers (OECD countries and seven other nations1). Asia is the chief agricultural spender, with China in the lead at $165 billion. Lastly, 94 percent of all agricultural subsidies were used by Asia, Europe and North America.

Beyond the debate on the relevance of agricultural subsidies, the figures disclosed by the Worldwatch Institute are proving that support to agriculture has now become a strategic priority for quite a number of nations, whether to fight the current unpredictable and uncontrolled volatility of agricultural markets, or in the name of competitiveness or food security.

If finding an alternative to ineffective agricultural support for both producers and consumers becomes necessary, especially in Europe, letting agriculture be exposed to market turmoil and hyper-volatility without protection might be highly detrimental. All the more so since the dismantling of regulatory tools will worsen the volatility of agricultural markets, and will not improve global food security.

A clear vision of the reality of agricultural support implemented by key regional players is thus imperative to get a better understanding of the key global challenges of the 21st century. As shown by momagri’s SGPAA (Global Support to Agricultural and Food Production) indicator, the agricultural policies implemented by the world’s major nations are based on measures that support farming competitiveness and protection against agricultural market instability. Conversely, the EU is out of step with other agricultural powers, and is now the only one to grant uncoupled support to production––the SPSs––that is the keystone of its agricultural policy2.